Cathay Pacific could get cash injection from Qatar Airways

Qatar Airways, the third-largest shareholder in Cathay Pacific, said it was willing to provide an equity injection into Hong Kong’s financially battered flagship carrier if approached. “Cathay is a well-established company and as a shareholder, if Cathay Pacific were to approach us for an equity injection, we will definitely support them,” said Al Baker, Group CEO of the Doha-based carrier. Qatar said it was in a position to help, despite being hit hard by the collapse in global air travel demand. The airline holds a 9.99% stake in Cathay and previously expressed interest in raising its holding, but has been restricted by the limited volume of publicly traded shares. Cathay’s two main shareholders are Swire Pacific and Air China, which hold a 45% and 29.99% stake each. One way for Cathay to bolster liquidity could be to issue new shares. In March, Singapore Airlines issued US$3.8b in new shares as part of a wider US$13b cash-raising exercise. The airline, which flies to 170 destinations worldwide in normal times, would be a smaller one “only in the short term”, Baker said, adding it had already moved to substantially shrink its workforce of 45,000 people and reduce its fleet by a quarter, with a view of recovery as far away as 2023.<br/>